The Commissioner for SARS issues annual guidance on who must submit a tax return. For the 2025 year of assessment, the relevant notice was published on 02 June 2025, ahead of the filing season opening on 7 July 2025.
For natural persons, returns must be filed by 20 October 2025, unless you are a provisional taxpayer, in which case the deadline is 19 January 2026. South Africans working abroad are legally required to submit annual tax returns, though foreign earnings may be exempt under section 10(1)(o)(ii).
Crypto asset trading must be fully disclosed in your tax return. All South African tax residents, whether physically in South Africa or abroad, are subject to taxation on crypto income and gains.
It is essential to engage a consultancy with a deep understanding of South African tax laws and SARS compliance, particularly regarding crypto asset trading.
At Crypto Tax Consulting, we provide a holistic, end-to-end service for calculating and filing income tax returns, addressing both individual and corporate matters related to crypto asset portfolios, ensuring clients remain fully compliant and protected from penalties.
CATEGORIES
NORMAL TAXPAYER – SOUTH AFRICANS WORKING LOCALLY
This category typically includes taxpayers employed by a single employer, with Pay-As-You-Earn (PAYE) withheld monthly. Their tax return usually includes medical aid contributions, retirement annuity contributions, and travel allowance claims.
To remain fully SARS-compliant, these taxpayers must register for income tax and submit income tax returns on time to avoid penalties and interest.
PROVISIONAL TAXPAYER
Provisional tax is a preliminary bi-annual tax submission designed to reduce the cash flow burden of an annual South African income tax liability.
Anyone who conducts a trade or earns additional income and is not subject to withholding tax must register as a provisional taxpayer with SARS.
SARS may also automatically register individuals as provisional taxpayers if they fail to register themselves, which is fully permitted under South African tax law.
SOUTH AFRICAN WORKING ABROAD
Some expats working abroad mistakenly believe they do not need to declare foreign income or submit South African tax returns.
In reality, all South African tax residents abroad are legally required to submit annual tax returns to SARS, declare worldwide income, and may be eligible to claim an exemption on foreign earnings under section 10(1)(o)(ii).
Even if you qualify for the exemption, submitting a tax return to SARS remains mandatory. Specific criteria apply to claim this exemption.
FOREIGN NATIONALS IN SOUTH AFRICA
Foreign nationals working in South Africa are subject to income tax on earnings from South African sources, including services rendered locally. Employment contracts and compensation packages must be carefully structured to optimise SARS tax obligations.
It is essential for foreign nationals to determine their tax residency status. Depending on circumstances, they may be considered a South African tax resident, subject to worldwide income tax, or a non-resident, taxed only on South African-sourced income. Key considerations include the ordinarily resident test and the physical presence test.
CORPORATE TAXPAYERS
South African companies are subject to corporate income tax. Resident companies are taxed on worldwide income, while non-resident companies are taxed on income from South African sources.
A company is considered a South African tax resident if it is incorporated in South Africa or if its place of effective management is in the country.
Corporate taxable income is calculated by subtracting allowable deductions, which may include operating expenses, capital allowances, and losses carried forward from previous years.
Companies must file annual tax returns and make provisional tax payments throughout the year to avoid penalties and interest.
PROCESS AND COSTING
Our team follows a set process in dealing with returns. This allows us to submit your returns effectively and accurately the first time.
Initial review: We conduct a comprehensive review (which includes transferring your tax profile onto ours) for first-time accurate tax planning and compliance. R 1,800 (VAT excl.)
Below is the information required to initiate the process:
- Full name and surname
- ID/Passport number
- Tax number
- Banking details
- Residential address
- Telephone numbers
Cost for Submitting Tax Return: please note below our fees to prepare and submit an income tax return. Our fees vary depending on the complexity of the return.
Standard tax return (i.e. includes an IRP5 certificate, medical tax certificate and/or retirement annuity tax certificate declaration) R1,265 (VAT excl.)
Complex return: Where in addition to the aforementioned standard tax return, a declaration requires the inclusion of either an IT3(c) certificate – capital gain event, rental property, consulting/trading income and/or the disposal of property attracting CGT, the minimum cost is R1,980 (VAT excl.) – subject to increase dependent on complexity.
Expatriate or non-resident tax return: For non-resident taxpayers working in South Africa. Or, for South African expatriates working outside South Africa as contractors or employees claiming section 10(1)(o)(ii) exemption at a minimum cost of R2,475 to R4,850 (VAT excl.)
FREQUENTLY ASKED QUESTIONS
INDIVIDUAL TAX
The 2025 South African tax filing season for individual taxpayers is announced annually by SARS (South African Revenue Service). Typically, the season opens in July each year.
Published dates for the 2025 Filing Season:
- Auto-assessment notices: 7 July 2025 – 20 July 2025
- Individual taxpayers (non-provisional): 21 July 2025 – 20 October 2025
- Provisional taxpayers: 21 July 2025 – 19 January 2026
- Trusts: 20 September 2025 – 19 January 2026
To prepare your South African income tax return, the following documents are required:
- IRP5 employee tax certificate
- IT3(b) and IT3(c) certificates from financial institutions for interest, dividends, and capital gains
- Retirement annuity or pension fund contribution certificate
- Medical aid contribution certificate
- Travel logbook for travel allowances received
- Any additional income earned during the tax period must also be declared on the tax return.
SARS may flag previously unsubmitted tax returns as outstanding if the taxpayer was required to submit a return but failed to do so. The likelihood is high for periods where the taxpayer did not meet the filing threshold or other submission requirements.
SARS typically processes tax refunds to verified South African bank accounts within 7 to 21 business days.
- This is announced on an annual basis by SARS (South African Revenue Service), however, the South African Tax filing season typically opens in July every year, for all individual taxpayers.
- The published dates for the 2025 Filing Season are:
- Auto-assessment notices: 7 July 2025 to 20 July 2025
- Individual taxpayers (non-provisional): 21 July 2025 to 20 October 2025
- Provisional taxpayers: 21 July 2025 to 19 January 2026
- Trusts: 20 September 2025 to 19 January 2026
- The following information is needed:
- IRP5 employee tax certificate;
- IT3(b) and (c) certificates from financial institutions in respect of interest, dividends and capital gains;
- Retirement annuity fund or pension fund contribution certificate:
- Medical Aid certificate of contributions; and
- Travel logbook (related to travel allowances received)
- Further to the above, any additional income received by the taxpayer during the tax period must be declared on the return.
The odds are high for tax returns to be flagged by SARS for periods where taxpayers are required to submit a return and a return was not submitted, i.e. periods where the taxpayer did not meet all the requirements of the threshold.
SARS takes up to 7-21 business days to process a refund to verified South African banking accounts.
EXPATRIATE TAX
A taxpayer’s residency status for South African tax purposes is determined using the ordinarily resident test and the physical presence test, as outlined in the Income Tax Act.
Each taxpayer’s circumstances and history should be assessed, preferably by a South African tax professional, to determine residency status and the correct way to submit tax returns to SARS.
RESIDENTS
South African tax residents are taxed on their worldwide income, including foreign earnings, fringe benefits, and bonuses. All such income must be declared to SARS for tax purposes.
Crypto Tax Consulting offers an expatriate tax calculation service to help residents determine their potential South African tax liability.
Yes, South African tax residents employed by South African companies qualify for the foreign employment income exemption under section 10(1)(o)(ii) when rendering services outside the Republic. The exemption is capped at R1.25 million.
Yes, to benefit from the foreign employment income exemption, South African tax residents must declare all foreign employment income to SARS, even if it is fully exempt, and then claim the exemption under section 10(1)(o)(ii).
Yes, South African tax residents must declare all foreign income to SARS, even if taxes have already been paid abroad. To avoid double taxation, taxpayers can utilise South Africa’s double taxation agreements (DTAs). Claims under these treaties must also be declared and submitted to SARS.
NON-RESIDENTS
Non-residents with an active South African tax reference number must submit a tax return, even if no South African-sourced income was earned. In such cases, a zero return is required.
The obligation to submit a return ends only after deregistering your tax number, which can only occur once all South African assets including bank accounts, properties, trust interests, shares, and policies—have been disposed of.
If there is a double taxation agreement (DTA) between South Africa and the country where you are a tax resident, the DTA determines which country has taxing rights over your income. If both countries have taxing rights, you must claim relief for foreign tax paid to avoid double taxation.
For non-residents receiving pension or annuity income from a South African pension fund, the double taxation agreement (DTA) between South Africa and your country of tax residence determines which country has taxing rights.
If the DTA is silent or does not exist, you must claim relief for foreign tax paid to avoid double taxation.
It is faster for SARS to verify and process tax refunds to a South African bank account compared with a foreign bank account.
TAX SEASON 2025 DEADLINES
7 July 2025 to 20 July 2025
- Auto-assessment notices
21 July 2025 to 20 October 2025
- Non-Provisional taxpayers
21 July 2025 to 19 January 2025
- Provisional taxpayers
20 September 2025 to 19 January 2026
- Trusts